AUCT will focus on urban areas in the east next year and is preparing to expand its line of business to boost revenue. (Khao Hoon, 26/11/15)
Comment: Still a wonderful asset-light business model, but don’t care much for its valuation at the moment
CSS expects to have 2015 revenue of Bt4.8bn and get a project in Myanmar on the boom in communication. Its current backlog is now Bt1.3bn. (Thun Hoon, 26/11/15)
Comment: With a backlog of only thb 1.3bn there’s no way it can justify its current valuation….but retail seems to believe otherwise, management obviously doesn’t give his continuous selling of stock
DTAC reports that roaming data usage this year has grown 50% with voice roaming slipping around 10%. Total revenue from roaming is Bt600mn, close to last year. (Khao Hoon, 26/11/15)
EGCO plans to 5-year investment of Bt91bn in order to expand power plants. It expects to generate profit of Bt10bn in 2017. (Thun Hoon, 26/11/15)
Comment: There’s something interesting happening here with EGCO being one of the few utility companies to potentially grow 20% p.a. for the next 5 years.
AUCT expects 3Q15 earnings of Bt58mn (+8%). 4Q15 net profit is expected to be good aided by seasonality. It expects this to raise 2015 net profit to Bt227mn (+12.5%). It has applied to join the 4G auction. (Khao Hoon, 10/11/15)
Comment: We think that the news is slightly incorrect for AUCT, more that AUCT would love to be the firm holding the auction on behalf of the government
EE expects 4Q15 earnings to turn around backed by orders from China from ethanol stimulus measures. It expects 2016 net profit to be good aided by 240MW power plants. It plans to wipe out retained loss of Bt684.36mn with dividend payout of 40% as is its policy. (Thun Hoon, 10/11/15)
GCAP is talking to a prospective partner to expand its business, lending on agricultural machines, which it expects to finalize soon. It targets 2015 loans for crepe rubber machines to reach Bt20mn from the addition of customers. It expects 3Q15 earnings to be good backed by increased demand for loans. It plans to expand to corporate loans in 2016. (Thun Hoon, 10/11/15)
Comment: A rather interesting little company, but has the decrease in agricultural prices killed its target market?
GOLD’s board has approved a capital increase of 685.7mn shares for PP to FPHT at Bt7.25/share, equal to Bt4.97bn. It plans to use the funds from the capital increase for new projects. It reported 3Q15 earnings of Bt133.52mn (+71%) with revenue of Bt2bn. It plans to pay an interim dividend of Bt0.05/share, XD on Nov 19, PD on Dec 3. (Thun Hoon, 10/11/15)
Comment: Ah well, people are still holding out for the REIT
Union Auction Plc (AUCT), which listed on the Market for Alternative Investment (MAI) in August 2013, is Thailand’s largest automotive vehicle auction company, with coverage throughout the country. Deputy managing director Varunyoo Sila discusses the company’s strategy and outlook.
Please explain Union Auction’s history.
We began in August 1991 under the management of Thepthai Sila. He saw the potential of the automobile auction services business for Thailand, as the industry was still in its infancy compared with developed markets such as the US and Japan.
We were the first in Thailand to conduct open automobile auctions, and because we used a transparent auction process, the Financial Sector Restructuring Authority assigned us during the 1997 Asian financial crisis to conduct auctions for all types of properties of insolvent financial companies. We’re the only Thai firm, and only the second in Asia after one in Japan, to become a member of the US-based National Auto Auction Association. Over the years, we’ve expanded our locations and offerings to include other types of assets, in line with customer demand. We also listed on the MAI to enhance the company’s brand and transparency and fund our expansion.
Please explain Union Auction’s business.
We are an intermediary that conducts auctions of all types of properties as well as other auction-related services. The latter include transport of properties to be auctioned, helping bidders to seek funds by liaising with financial firms and consignment of properties for which bidding was not successful. Today we have more than a 50% market share with 15 bidding sites and 26 property storage facilities in 24 provinces, giving us the highest coverage in the business. Automobiles represent the largest portion of assets auctioned at nearly 90%, with the rest being motorcycles and other assets. Last year, we transacted more than 100,000 units.
Who are Union Auction’s customers?
Our customers are both the suppliers and the purchasers of assets. On the supply side we work closely with entities such as financial institutions and leasing companies that have seized automobiles, car rental companies with vehicles that have reached the end of their useful economic lives, general businesses with company cars, used-car “tents” or garages and individuals who wish to dispose of their vehicles. On the purchaser side, 70% of our customers are used-car “tents” or garages and 30% end-users. We’re also proud of the fact that 70% of our customers are repeat customers that know us and our services well. Continue reading Co Visit: Union Auction Plc (AUCT)